Consolidation Question...
Date: Thu, 08/02/2007 - 04:55
Here's my question...lets say I ask for my consultation. I'm currently in debt for $8000 on my Chase Card & $7000 on my Discover Card. If I consolidate (from what I understand from here) a consolidation company will work to combine the debt (which would be $15,000) & then work out payment plan?
What if the monthly payment amount is too much? Can it be negociated? I can only afford $300 a month to pay...that's after I pay rent, auto loan, auto insurance, student loan. Those I have no problem with as they are low payments...its the credit cards that are killing me.
Lawn- did you sign up for the consultation? If you did, they wil
Lawn- did you sign up for the consultation? If you did, they will contact you. Here is a link that explains the benefits of debt consolidation at http://www.debtconsolidationcare.com/benefits.html They will take alot of things into account when coming up with a payment plan: income-debt to income ratio,etc. For instance, if you have alot of interest on your cc accounts, they can usually get that waived. Have a look at the link, and if you do decide to go with a company, there is also a Ranking Chart on this site to help you. Whoever you decide to go with, please check them out with the BBB, and others who have used them with good results. If you have any more questions, please ask..Karen :D
The consolidation company will offer you different payment plans
The consolidation company will offer you different payment plans according to what you can afford. The plan will finish early if the monthly payments are set high. If you keep the monthly payments lower, the duration to finish the plan will be longer. They will negotiate with your creditors and ensure that no further interests and fees are charged on your debts.
In case, you are unable to afford the lowest payment plan in this program, you may consider a debt settlement program. Here, the payments are much lower from the consolidation plan. But keep in mind, this programs works in a different way. In this program, your accounts will have to be in default for a certain period of time before your settlement company will put proposals to the creditors. During this period, an escrow account will be opened in your name where you will send your monthly payments. Once there is enough balance in your account, the settlement company will start negotiating with your creditors to settle the balance.
